The number of loans for house purchase remained steady in April compared to March, but was down compared to a year ago.
On an annual basis, there was a fall across both first-time buyer numbers and home movers. On a monthly basis, the number of first-time buyers fell but the number of home-movers rose slightly.
The 12 month rolling sum of the number of first-time buyers has been above 300,000 since June 2014, though it has been gradually falling since October.
First-time buyer loan sizes have increased since a year ago, though their income has grown faster in proportion relative to loan sizes which has meant a fall in the typical loan-to-income ratio. Loan-to-value ratios have also fallen compared to a year ago, down to 82.1% from 84%.
Competitive mortgage rates mean first-time buyers are paying less to service their mortgage than any time since the CML began tracking it in 2005.
However Brian Murphy, Head of Lending at Mortgage Advice Bureau, said:
"Despite their higher incomes and putting up larger deposits [17.9% vs. 16.0%], today’s first time buyers are still having to borrow more [4.6%] than they were a year ago to get a foot on the ladder. Affordability is clearly getting tougher even though mortgage rates continue to reach record lows."
The average home mover loan size decreased in April compared to March, but increased compared to the same period last year. Average income increased in April, meaning loan-to-income decreased both month-on-month and year-on-year.
Remortgage activity among home-owners was down on the month and on the year. It has remained relatively subdued since around 2009.
Lending for buy-to-let in April saw a decline compared to March, but there was substantial growth compared to levels in April last year. This was largely due to the increased levels of remortgage activity in the buy-to-let sector seen since the beginning of the year.
While over the past year about 30% of lending to home-owners was for remortgage, in the buy-to-let market 52% of lending was for remortgage.
Paul Smee, director general of the CML, commented:
"House purchase lending in April was relatively subdued compared to last year, but similar to activity in March. The economy is recovering, with employment up, earnings growing, and competitive mortgage rates, so we expect activity to continue building as the year progresses.
"Buy-to-let is showing stronger growth than home-owner lending, buoyed significantly by remortgaging, which continues to remain more subdued in the home-owner market."
Mark Harris, chief executive of mortgage broker SPF Private Clients, said:
"Caution in the housing market prevailed during April, with lending at a similar level to March but down on the same month last year. Uncertainty created by the general election played a significant part in encouraging buyers and sellers alike to sit on their hands until the outcome was known.
"The way in which lenders have been cutting mortgage rates ever lower confirms this hiatus. Many lenders are keen to lend and have ambitious targets for the year but with borrowers unwilling to commit, they are having to slash rates even further to attract business.
"Encouragingly for first-time buyers they are paying less to service their mortgage than at any time since 2005 when the CML started measuring this. Low interest rates are making it easier for people to get on the housing ladder and for second-steppers to move up it.
"Looking forward to the second half of the year, there is a lot of capacity in the market so mortgage rates will continue to be competitive. Borrowers may also be buoyed by the certainty that the election has brought and with an interest rate rise still looking a way off, confidence is bound to be stronger.
"Buy-to-let lending remains strong, particularly on the remortgaging side as lenders attempt to boost business by offering some great deals. Although it has come under attack for its tax breaks, it remains an attractive investment option compared to the alternatives."
